Algotrading BTC?

[zealchain]

I'm a software developer that has been interested in algotrading for many years now. I'm on a budget and at the moment trading securities would be pointless. So I'm looking at cryptocurrency trading. I have some questions:

1. Is anyone algotrading BTC?
2. On what exchanges?
3. What sort of analyses are you doing?
4. What types of strategies?
5. Where do you get historic data? Is it by the hour? minute? second?
6. Is it similar to trading equities?
7. Is scalping possible?
8. Do you trade any altcoins?
9. BTC is extremely volatile. How successful have you been?
10. Is there such thing as finding the "intrinsic value" of a cryptocurrency?
11. What are the transaction costs?

[slaman29]

So you're basically going to develop an algo?

It's really a big range of answers to some of your questions and my suggestion would be to check these marketplace type platforms where people can design and make their own algos, to either rent or sell (some platforms just let you "rent" the algos so they don't reveal the exact settings).

I know about cryptotrader, but there is also cryptohopper. Look them up:)

[el kaka22]

Algotrading? Must be a new terminology to me. Googling got me this definition:

Algorithmic trading (also called automated trading, black-box trading, or algo-trading) uses a computer program that follows a defined set of instructions (an algorithm) to place a trade. The trade, in theory, can generate profits at a speed and frequency that is impossible for a human trader.

As expected, investopedia got an article on this:
https://www.investopedia.com/articles/active-trading/101014/basics-algorithmic-trading-concepts-and-examples.asp

So, it is all about coding our own bot for trading? Basically cryptocurrency trading is not that much different from other types of trading. You can simply start and adopt it as all strategies and all basics of trading are compatible here as well. You can code your bot and start your trading right away.

I guess just this one topic will be more than enough to answer all your questions and doubts: Every BTC trader should use it.

[pawanjain]

Algotrading? Must be a new terminology to me. Googling got me this definition:

Algorithmic trading (also called automated trading, black-box trading, or algo-trading) uses a computer program that follows a defined set of instructions (an algorithm) to place a trade. The trade, in theory, can generate profits at a speed and frequency that is impossible for a human trader.

As expected, investopedia got an article on this:
https://www.investopedia.com/articles/active-trading/101014/basics-algorithmic-trading-concepts-and-examples.asp

So, it is all about coding our own bot for trading? Basically cryptocurrency trading is not that much different from other types of trading. You can simply start and adopt it as all strategies and all basics of trading are compatible here as well. You can code your bot and start your trading right away.

I guess just this one topic will be more than enough to answer all your questions and doubts:

This sounds to me like the traditional trading bot where the an algorithm is defined for the trading bot to follow and the bot places the trade orders as per the instructions. If that's the case then yes many people use it these days to make automated trades.
It has it's own pros and cons though since we have to keep an eye on the market and accordingly tweak the algorithm.

[joniboini]

Algotrading is indeed another term for bot trading. Basically anytime you use a bot to automatically trade for you using some sort of algorithm, then that's algotrading.

1. Is anyone algotrading BTC?
2. On what exchanges?
3. What sort of analyses are you doing?
4. What types of strategies?
5. Where do you get historic data? Is it by the hour? minute? second?
6. Is it similar to trading equities?
7. Is scalping possible?
8. Do you trade any altcoins?
9. BTC is extremely volatile. How successful have you been?
10. Is there such thing as finding the "intrinsic value" of a cryptocurrency?
11. What are the transaction costs?

1. Yep. Lots of people do this.
2. Various exchanges, includes but not limited to Binance, Kraken, Poloniex, Bittrex, etc.
3. Algotrading will always use technical analysis isn't it?
4. I used to use sma, volume and bolinger band.
5. This will depend on the exchange, most of the time people use hourly and 30-minute frame if they do some swing trading, and maybe shorter time-frame if they want to scalp.
6. Yes.
7. Yes, maybe the volatility is the key difference.
8. Lots of people do this.
10. That's what most people call as fundamental analysis.
11. Depends on the exchange that you use.

[FanEagle]

I'm a software developer that has been interested in algotrading for many years now.

I am just curious on seeing your capabilities on coding bots and its performance; if your time permits, please share how big you were successful with your algotrading. Like people have already mentioned, you may go for crypto trading as well with your same strategy and bots; probably you might need to alter few parameters at minor levels as per the requirements of crypto markets.

I have some questions

I suggest you to make use of this trading discussion board along with Exchanges sub-board. If you go through various topics, you can understand everything required to kick off your crypto trading (I am suggesting this as you are not new to trading). Good luck!

This sounds to me like the traditional trading bot where the an algorithm is defined for the trading bot to follow and the bot places the trade orders as per the instructions.

Then how "modern" bots work? I am sorry I could not figure out the differences as your explanation.

[rexxarofmoknathal]

There's a bunch of bots out there for this exact purpose, like Gunbot, profittrailer, EONbot, etc. Some of them even originated on the forum.

None of these are going to be an automatic money-making guarantee, you'll need to put some work in to fine-tune the built-in strategies.

You'll also find that these programs can quite easily lose your money too if you don't set the right parameters,

I recommend taking some time to trial a few of them out before investing (most offer free trials).

[Kemarit]

1. Yes
2. Binance, Kraken, Bittrex, top-tier exchanges
3. TA
4. Bollinger Bands or Fibonacci lines MACD, RSI.
5. Depends, but mostly hourly historical data
6. Crypto is very different as far as I understand because it's very unstable as the market is open 24 x 7.
7. Yes
8. Yes, altcoin could be profitable if you time the market.
9. So-so, I would say, of course I make money playing the price swing
10.Of course, market sentiments could also be a indicator as to where the price will go
11. Depends on the exchanges itself. As low as .05% fee if I'm not mistaken.

[Yaunfitda]

Yes, but I only trade in Binance because that's how I set up my bot. I'm using technical analysis, and just the rest of the guys, bollinger bands, MACD, the usual technical indicators. I try to extend my historic data to at least the last 7 hours or even 24. Fees is up to the exchanges, you can't control what fees they are going to top up with your trading.

[bearexin]

I have not tried Algo–trading, but isn’t it the same thing as making use of bots? You kind of develop some strategies that will help the computer to place trades quickly based on the directions you have set for it to follow. You should look into cryptocurrency exchanges where bots are being used, it might as well work out. All these things are not really what I have looked into, I just prefer to trade by myself and whenever I feel like trading. And I don’t trade regularly, only when I feel like I should trade or when I am meant to, because the market is in a better position.

5. Where do you get historic data? Is it by the hour? minute? second?

I have not tried finding historical data of bitcoin markets. But, I am just curious what is the use of it? If I want to find the price of bitcoin at the beginning of 2017 then I will refer bitcoin's all time chart but never heard about availability of such data from exchanges.

I just tried on google and find this; probably this is what you look for:
https://in.investing.com/crypto/bitcoin/historical-data